If New York\u2019s governor signs a bill passed by the state legislature on Thursday (June 4), businesses will be prohibited from using so-called \u201csurveillance pricing.\u201d<\/p>\n
The One Fair Price Act (A.9349<\/a>) would prohibit \u201cpersonalized algorithmic pricing,\u201d restrict the use of personal data for surveillance pricing, require clear disclosure when automated pricing systems are used, and establish enforcement mechanisms, according to a memorandum in support of legislation<\/a>\u00a0posted on the Assembly\u2019s website.<\/p>\n The memorandum said that many companies are using pricing algorithms fueled by personal data to set individualized prices, and that this practice results in hidden discrimination, economic harm and erosion of trust.<\/p>\n \u201cNew York consumers deserve transparent and fair pricing,\u201d the memorandum said. \u201cBy prohibiting the use of personal data for individualized pricing and requiring disclosure of non-personal automated pricing systems, this bill restores consumer autonomy and prevents exploitative data-driven pricing models.\u201d<\/p>\n The bill was passed by both the state\u2019s Assembly and Senate on Thursday, per the site.<\/p>\n Reuters reported<\/a> Friday (June 5) that New York Gov. Kathy Hochul<\/a>\u00a0has until the end of the year to act on the bill and that a spokesperson for Hochul said she is reviewing it.<\/p>\n Advertisement: Scroll to Continue<\/p>\n New York State Attorney General Letitia James<\/a>\u00a0said in a Friday post<\/a> on X: \u201cThe One Fair Price Act passed the legislature in New York! This is a big victory in our fight to ban surveillance pricing and help make life more affordable in New York.\u201d<\/p>\n The Chamber of Progress<\/a>, a tech industry policy coalition, said in a Friday press release<\/a>\u00a0that it is calling on Hochul to veto the bill or insist that it be amended.<\/p>\n \u201cA bill that makes it illegal to offer someone a coupon isn\u2019t a ban on surveillance. It\u2019s\u00a0a ban on savings,\u201d Drew Ambrogi<\/a>, policy manager at the Chamber of Progress, said in the release.<\/p>\n The Business Council of New York State<\/a> reposted\u00a0a post on X that quoted the organization\u2019s senior director of government affairs, Chelsea Lemon<\/a>, saying it is disappointed\u00a0that the legislature passed the bill.<\/p>\n \u201cIt\u2019s important for the public to understand that these discounts are not disappearing because businesses chose to end them, but because the Legislature is banning them,\u201d Lemon said, according to the post.<\/p>\n PYMNTS reported in November that New York became the first state to take action against \u201calgorithmic pricing<\/a>\u201d when it enacted a law requiring retailers to notify customers about the use of the practice.<\/p>\n